Welcome!

@DevOpsSummit Authors: Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz, Aruna Ravichandran

Related Topics: @CloudExpo, Microservices Expo, @BigDataExpo

@CloudExpo: Blog Post

SaaS Adoption: Before You Sign on the Dotted Line | @CloudExpo #API #SaaS #Cloud

The attraction of SaaS offerings for businesses include advantages such as speed of delivery, scalability, and low cost of entry

The purpose of this article is draw attention to key SaaS services that are commonly overlooked during contact signing that are essential to ensuring they meet the expectations and requirements of the organization and provide guidance and recommendations for process and controls necessary for achieving quality SaaS contractual agreements.

Introduction
The attraction of Software as a Service (SaaS) offerings for businesses include advantages such as speed of delivery, scalability, low cost of entry, accessibility, and lower costs to just name a few. But one can't deny another aspect of SaaS adoption which is the "selling" aspect of such solutions. SaaS providers want their customers to feel that not only do they have the best solution, but they have your best interest in mind and will take care of everything for you. They will often pitch their solution services as complete and comprehensive to their customer's needs. But is it necessarily true in all cases? Just like leasing a home or an automobile, it's extremely important to understand the services provided and if those services match the needs and requirements of your business. There are some basic common areas in which key services should be understood and, if needed, be negotiated with the provider to ensure you're provided the best services possible. Don't assume that because other customers agreed to the provider's standard agreement, that it also meets the needs of your business.

Hosting Arrangement and Third Parties
Not all SaaS solutions are developed, integrated, supported and hosted the same. In order to understand and evaluate potential risks, such as the SaaS Provider becoming insolvent and going out of business, it's important to understand the hosting arrangement and identify all parties involved. Here are some things to ask:

  • Is the solution single tenant, multi-tenant, or on its own hardware?
  • Does the SaaS provider host their solution or utilize a third party such as Amazon and Microsoft Azure?
  • Will the solution be implemented or supported by a third party?
  • Are there third-party products or services required for the solution to operate?

Understanding the Data
Data is the critical part of a SaaS solution. Before the contract is signed, the data formats and even the data relationships of the solution should be well understood. This becomes even more essential if the SaaS solution is expecting data imports from legacy or integrated systems. Once understood a data strategy will often need to be in place. But without understanding the work involved in conversion, the budget and resources may not be adequate for the project. As early as the Request for Proposal (RFP) stage, all potential SaaS providers should supply data format and relationship information.

Environments
It's common for a SaaS Provider to only provide a production environment and use of a common sand-box environment. This proves to be insufficient because the customer has no control as to who makes changes to this environment in terms of configuration and data refreshes. In most cases at least two environments (production and non-production) environments are necessary, so there's an opportunity to test out any configuration changes before going into production. Here are some other examples as to the requirement for additional environments:

  • A development environment could be needed to test complex system integrations or custom development.
  • A training environment with the specific company configuration is required.

True System Availability
SaaS providers will give a percentage (such as 99.9%) of guaranteed uptime / system availability and if for a given month that is not met, a credit is due back to the customer. SaaS agreements define uptime / system availability in a variety of ways. The trick is to step back and fully understand all the possible ways the system could be unavailable on a monthly basis. There are usually two main kinds of unavailability that are planned and unplanned. One of the more common unplanned calculations is as follows.

Uptime Calculation:

((Users Minutes - Downtime) / User Minutes) x 100 = Uptime %

In addition to the promised uptime from the SaaS provider there's also a section in the agreement for planned maintenance. The window of the planned maintenance varies greatly depending on the provider and solution. It could be one hour a month or it could be eight hours per week. What's extremely important to point out here is that in most cases the provider will not include planned maintenance in this calculation for the promised uptime. Therefore the true uptime / system availability promised by the provider is much less given that they could use the entire planned maintenance window and not have to provide any service credits. This may or may not be acceptable based on when the solution is expected to be used, but it's important to understand all aspects of when the solution may not be available.

Time Zones for Service Support
It's important to be aware of the time zones indicated in the agreement in terms of Support Center availability. Your organization could be located in the Eastern Standard Time zone while the SaaS provider's support center is located in the Pacific Standard Time zone where there's a three hour difference. This can be an issue when employees come in at 8 am EST on Monday only to find the solution is not working and the provider's support center is not open until 8 am PST.

Security Breaches and Reporting
The SaaS contract should define the procedure in which pProvider informs your organization when a security breach occurs including how your organization should be contacted and the actions to be taken. In addition, there should be language that by request they should provide any penetration testing reports and proof of on-going security certifications standards (ISO27001, SSAE16, etc.).

Incident Resolution
Expectations as to how incidents are handled should be well defined. Here are some areas to consider:

  • Quicker response for critical and high incidents
  • Escalation of high priority incidents. For example if a high priority incident isn't resolved in two days it becomes a critical incident.
  • The specific method of how your organization should be contacted when these incidents occur.
  • How quickly the vendor should communicate the incident and the expectation of when it will be resolved. Failure to do so would lead to a service credit.

Service Level Credits
What good is a system uptime guarantee of 99.9% if there's no defined compensation when service levels are not met?

  • Define what areas of the service need to be measured (performance, availability, incidents, etc.). Note that in order for this to be effective, there must be a non-subjective way to gather information to measure whether service levels are being met.
  • Make sure your credit structures are well defined in terms of when a credit would occur.
  • Make sure that the contract spells out when (quarterly or annually) and how service levels will be applied (credit or cash back).

Service Renewal
Beware of rate hikes! Many SaaS providers will put in high increases once the term is over. Here are some suggestions to help reduce the high expense impact on renewal:

  • Limit the increase in fee to 3% or an industry standard price index.
  • You may also want to look for a longer term contract up-front (five years instead of three, etc.)
  • Make sure you include a clause that even if the product name changes or gets bundled you pay the same fee.

Return of Company Data
Though the focus when adopting a SaaS solution is getting it up and running, it's important to know how you will handle the data once the relationship with the provider comes to an end. Here are the things to keep in mind:

  1. Data Format: Many SaaS providers will tell you that they will give you the data in the format they select or refer to a standard format. Make sure you negotiate the specific format in the agreement or state that you need to agree upon a format.
  2. Data Definitions: Make sure the provider includes the data definitions of the data they give you. What good is a blob of data if you don't understand it and how to parse out the information?
  3. Data Completeness: Make sure the data given back to you includes any custom scripts and APIs. You want all the custom data that is specific to your organization as it will also include business rules.
  4. Data Expiration: Make sure the provider holds the data for enough time so it can be sent back to you.
  5. Data Return Request: Many SaaS providers will return data only upon request, so make sure you have enough time and understand that you have to initiate the request.
  6. Cost: Beware that some providers will charge for the return of your data so make sure that this is negotiated upfront in the agreement.

In addition, be aware that some providers get rid of the data as little as one week after the end of the contract (usually 30 days). Make sure the time-frame meets your expectations.

Recommendations
In addition to the guidance provided, the following recommendations are encouraged:

Hosted Services Requirements Document
Work with your procurement, security, IT architecture, and legal teams to develop a Hosted Services Requirements document outlining service expectations for the SaaS provider. The document should be used as part of the contractual agreement. If the SaaS provider would rather utilize their own agreement, the Hosted Services Requirements document can then be used as a guideline to compare what your organization wants and what the provider is proposing.

The Hosted Services Requirements document will consist of legal, security, and service related items such as (just some examples):

System Availability

System Performance

Incident Management

E-Discovery

Disaster Recovery

Subcontracting

Insurance

Infringement Indemnity

Service Renewal

Data Ownership

Data Storage

Data Retention & Return

Data Protection

Security

Service Level Credits

Reporting

Dispute Resolution

Software Escrow

Advertising

Acceptance Period

Compliance & Laws


Develop Standard SaaS Questions for RFI / RFP
Though not all SaaS solutions are alike, there are still basic questions you will want to know about the solution from a support, implementation, pricing, and hosting arrangement perspective. In order to measure provider risks and evaluate solutions in a common manner, standard questions become very important.

Institute A SaaS Agreement Review Process
SaaS service agreements and contractual documents should be looked at carefully from various points of view. Such as:

  1. Legal - Is there enough protections to minimize risk?
  2. Procurement - Are the pricing terms and renewal rates acceptable?
  3. IT Architecture - Does the solution meet our Enterprise IT standards and strategy?
  4. IT Security - Does the offering provide adequate security protections based on the type of information being used and how it's utilized?
  5. Solution Owner - Does the solution provide the services necessary for the community using this solution?
  6. Accounting- What part of this solution can we capitalize and what is expense?

More Stories By Ed Witkovic

Ed Witkovic is an IT Solutions Architect at Eversource based in Berlin, Connecticut. His 20+ years of diverse expertise includes leading development and integration teams, Manager and Director of IT Key Account Management for Henkel, and now currently focused on Cloud Adoption in regards to IT Processes, Roadmaps, Solution Design, Strategy, and Solution Assessments.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@DevOpsSummit Stories
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with legacy components, and also go over automated capabilities provided by operators to auto-update Kubernetes with zero downtime for current and secure deployments.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual business failure.
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost and increase in speed. Sometimes in order to reduce complexity teams compromise features or change requirements
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. That means serverless is also changing the way we leverage public clouds. Truth-be-told, many enterprise IT shops were so happy to get out of the management of physical servers within a data center that many limitations of the existing public IaaS clouds were forgiven. However, now that we’ve lived a few years with public IaaS clouds, developers and CloudOps pros are giving a huge thumbs down to the ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering management. To date, IBM has launched more than 50 cloud data centers that span the globe. He has been building advanced technology, delivering “as a service” solutions, and managing infrastructure services for the past 20 years.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http://www.ryobi-sol.co.jp/en/.
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implement always-vigilant DNS security
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using new techniques such as feature flagging, rollouts, and traffic splitting, experimentation is no longer just the future for marketing teams, it’s quickly becoming an essential practice for high-performing development teams as well.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous architectural and coordination work to minimize the volatility of the cloud environment and leverage the security features of the cloud to the benefit of the CICD pipeline.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and business benefits that cloud bursting provides, including increased compute capacity, lower IT investment, financial agility, and, ultimately, faster time-to-market.
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances and cost-effective resources on AWS, coupled with the ability to deliver a minimum set of functionalities that cover the majority of needs – without configuration complexity.
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we've helped public, private and nonprofit organizations implement technology solutions that speed and simplify their operations. As one of the fastest growing IT solution providers in the country, we have gained a reputation for effortless implementations with relentless follow-through and enduring support.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating systems, programming languages and microprocessors. Their elite team has collectively earned dozens of patents, three film credits and grown record setting businesses. And collectively, they've shipped more than 2 billion licensed products. They are difference makers who have a reputation for delivering innovative products and accomplishing what many others don't believe is even possible. They are ...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their associated CPUs, memory storage and network) into one or more large servers capable of handling the biggest Big Data problems and most unpredictable workloads.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching of virtual storage services to its enterprise market.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant that knows everything and can respond to your emotions and verbal commands!
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing, CA Technologies. "It's this results-driven combination of technology and business that makes me so passionate about DevOps and its future in the industry. I am truly honored to take on this co-chair role, and look forward to working with the DevOps Summit team at Cloud Expo and attendees to advance DevOps."
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.